The second incomes campaign offers individuals the opportunity to inform HMRC that they have undeclared income from a supplementary income stream.
Harmer Slater Sutton’s business advisers and accountants has released more details about the campaign which targets individuals in employment who have an additional untaxed source of income.
The HMRC guidance lists the following possible examples:
fees from consultancy or other services such as public speaking or providing training;
payment for organising parties and events or providing entertainment;
income from activities such as taxi driving, hairdressing, providing fitness training or landscape gardening;
profits from spare time activities such as making and selling craft items; and
profits from buying and selling goods, for example regular market stalls, boot sales, etc.
There is currently no end date for this campaign but taxpayers that make a disclosure will have four months to calculate what they owe and to make a payment to HMRC. Making a disclosure to HMRC as part of the campaign will allow taxpayers to take advantage of the best possible terms.
HMRC will continue to focus on non-compliant taxpayers who chose not to take up the opportunity to avail of the campaign. HMRC may formally investigate taxpayers that did not come forward under the disclosure facility or who HMRC believes have made an incomplete disclosure.
Taxpayers that are targeted by HMRC could face penalties as high as 100% of the additional tax due (200% for offshore related income) and there is also the risk that HMRC may carry out a criminal investigation.
Harmer Slater are an independent firm of chartered accountants and business advisers located in Sutton, close to central London with experience in dealing with listed and unlisted businesses operating across a range of industries in the UK and overseas. For full details go to HARMER